Welshpool-based gold explorer Allied Gold Ltd has secured a $34.3 million loan facility to complete its project financing package for the company's Simberi oxide gold project offshore Papua New Guinea.
Allied announced today the loan funds, together with a hedging facility of up to 250,000 ounces of gold, had been secured through RMB Resources Ltd.
The loan facility is in addition to a total of more than $50 million raised in new capital by Allied Gold this year to take Simberi through to project commissioning in the first half of next year.
Allied Gold Managing DirectorWayne Loxton said "the financial package includes a mandatory hedging component of 150,000 ounces which represents 21 per cent of Simberi's current known mineable reserves and resources.
"Establishment of the RMB loan is another milestone in the development of our project and in conjunction with the equity funds already secured, now completes the financing package," Mr Loxton said.
In February this year, Allied placed 25 million ordinary shares at an issue price of 40 cents per share to predominantly UK based investors, institutions and fund managers to raise $10 million. In the second part of the capital raising, just completed, Allied placed a further 94.7 million shares at 44 cents each, taking the total number of Allied shares on issue to 243 million.
Allied will next month become one of the first companies with a new, previously undeveloped mining project in Papua New Guinea, to dual list on London's Alternative Investment Market and ASX.
"The term of the loan announced today is until 31 December, 2011, with security for the loan a charge over the project assets and a guarantee from Allied Gold," Mr Loxton said.
At 1250 WST, Allied's shares were priced at 50 cents.
